Chart plans to sell for $460 million

A Connecticut private equity firm has reached an agreement to buy Garfield Heights-based Chart Industries Inc. (OTCBB: CIDI.OB), a supplier of cryogenic equipment, for $460 million.
Under terms of the deal, First Reserve Corp. would acquire all of Charts shares outstanding for $65.74 per share, minus transaction expenses, which are expected to lop between $1 and $1.50 off the price, according to a statement from Chart.
In early-afternoon trading, Charts stock had risen about 6% to $63.26. Yesterdays closing price was $59.50. Chart has about 5.4 million shares outstanding.
Charts management will remain in their current roles, with a new board to be elected after the deal closes, according to the statement.
"Chart Industries fits our company's focus on diversified energy investments, said William Macaulay, CEO of First Reserve.
Chart CFO Michael Biehl said the company decided now was a good time to sell based on three factors: Chart's recent strong financial performance, its success in paying down its debt and the willingness of the company's major investors to sell.
Two companies, Audax Group of Boston and Oaktree Capital Management LLC of Los Angeles, together own about two-thirds of Chart's equity.
Chart filed for Chapter 11 bankruptcy two years ago, primarily because the company was carrying too much debt on its balance sheet. To cuts costs, Chart closed several manufacturing and distribution plants and reduced staff. Chart is currently carrying about $90 million of debt on its balance sheet, Mr. Biehl said. The company previously had debts totaling $260 million.
Under terms of the deal with First Reserve, Charts debt is expected to be paid down once the deal closes.
The company currently employs about 1,800 worldwide, with about 25 people in its Garfield Heights headquarters.
Last year Chart posted profits of $22 million on revenues of $306 million. The companys products include cylinders and containers used to store and transport liquefied gases.